I remember a commercial in which a group of people are huddle around a computer watching the launch of a new e-commerce site. With the first sale they all break out in cheers; with 10 sales they are all giving each other high fives; when sales hit 100, then 500, then 1,000 they all look at each other with panic. We are seeing this right now with one of our fulfillment clients. Sales are through the roof and the salesforce continues to pour it on….but the supply chain is being stretched.
It pays to have flexibility in your fulfillment and distribution system. By outsourcing some or all of your supply chain, you create flexible warehousing and storage for your raw materials and/or finished goods, plus you acquire flexibility in your workforce to process and fulfill orders or perform kitting and assembly work. Contracting to a third party logistics company provides you the ultimate flexibility to handle varying capacity requirements, and being able to adjust and adapt to growing (or shrinking) demands is the key to reducing supply chain pain.
If you have a 3PL like TAGG handling your fulfillment-it will be all high fives when order volume grows!